Interim Results
31 Oktober 2008 - 11:09AM
UK Regulatory
RNS Number : 1288H
Landround Plc
31 October 2008
LANDROUND PLC: INTERIM RESULTS
FOR PERIOD ENDED 31 JULY 2008
Landround plc, the AIM-listed reward programmes and promotions group, announces its unaudited interim results for the six months to 31
July 2008 and provides an update on recent developments concerning its longer term options.
Little has changed since the trading update released to the market on 13 October 2008. These results confirm the assessment previously
published.
Revenue in the six months ended 31 July 2008 was �2.4 million (six months ended 31 July 2007: �3.2 million). As anticipated, this
reflects significantly lower reward programme billings due to the prepayments made by a number of major clients in the second half of
2007/8. Promotions revenue was higher than in the equivalent period due in part to flight voucher billings linked to reward programmes.
Gross margins at 61% were 2% better than in the prior period due to an improved mix of rewards business, but were �425,000 lower in
absolute terms due to the lower revenue figure. Overheads were 5% below the level of the prior period despite the inclusion of �46,000 of
restructuring costs related to personnel changes in the Madrid sales office.
The increased operating loss at �566,000 compared with �248,000 in the six months ended 31 July 2007 reflects the impact of lower
revenues noted above.
We are nearer to a resolution of the contractual dispute with the buy & fly! rewards programme customer referred to in our recent
trading update and it is now anticipated that some income will accrue to the group from a settlement of this dispute. However, the quantum
anticipated is well below original expectations of revenue from the contract and does not change the Board's view that there will be a
further loss in the second half of this financial year to 31 January 2009.
Our Travel Pass contracts with Citigroup continue to develop and we hope to extend these programmes further in 2009/10. However, our
promotions division is suffering in an increasingly competitive market. Budgets are being either frozen or cut by our potential clients and
there is minimal visibility within the marketplace as to when this might improve.
The group continues to work closely with its bankers and professional advisers and various options are currently under consideration to
stabilise its financial position.
The Board continues to monitor the group's position on a regular basis and will seek to inform the market further as and when
appropriate.
-ends-
For further information please contact:
David Owen, Chairman Landround plc Telephone: 07976 723276
Simon Leathers, Daniel Stewart & Company Plc Telephone: 020 7776 6550
Consolidated Income Statement
for the six months ended 31 July 2008 (unaudited)
Note 6 months ended 6 months ended 31 12 months ended
31 July 2008 July 2007 �'000 31 January 2008
�'000 �'000
Revenue 3 2,385 3,198 6,568
Cost of sales (934) (1,322) (2,659)
Gross profit 1,451 1,876 3,909
Administrative expenses:
- Operating expenses (2,017) (2,124) (4,286)
- Exceptional items 4 - (1,277) (1,280)
(2,017) (3,401) (5,566)
Loss from operations (566) (1,525) (1,657)
Analysed as:
Loss from operations before (566) (248) (377)
exceptional items
Exceptional items - (1,277) (1,280)
Loss from operations (566) (1,525) (1,657)
Net finance expense (16) (17) (20)
Loss before taxation (582) (1,542) (1,677)
Income tax expense (571) - (42)
Loss for the period (1,153) (1,542) (1,719)
Loss per share (basic and 5 (8.2p) (11.0p) (12.3p)
diluted)
Consolidated Balance Sheet
as at 31 July 2008 (unaudited)
31 July 2008 �'000 31 July 2007 �'000 31 January 2008
�'000
Non current assets
Goodwill 362 362 362
Property, plant and equipment 204 356 276
Deferred tax asset - 613 571
566 1,331 1,209
Current assets
Inventories 35 69 46
Trade and other receivables 996 1,252 773
Cash and cash equivalents 225 732 1,255
1,256 2,053 2,074
Current liabilities
Borrowings (301) - (139)
Trade and other payables (1,033) (1,658) (1,099)
Provisions (1,272) (1,185) (1,539)
(2,606) (2,843) (2,777)
Non current liabilities
Provisions (709) (723) (857)
(709) (723) (857)
Net liabilities (1,493) (182) (351)
Equity
Called up equity share capital 701 701 701
Share based payment reserve 63 41 48
Share premium 4,055 4,055 4,055
Capital redemption reserve 10 10 10
Translation reserve (3) - 1
Retained earnings (6,319) (4,989) (5,166)
Total equity (1,493) (182) (351)
Consolidated Cashflow Statement
for the six months ended 31 July 2008 (unaudited)
Note 6 months ended 31 6 months ended 31 12 months ended
July 2008 �'000 July 2007 �'000 31 January 2008
�'000
Cash generated from operations 6 (1,169) (7) 389
Income taxes received - 45 45
Interest paid (18) (21) (37)
Net cash from operating (1,187) 17 397
activities
Investing activities
Interest received 2 2 17
Purchases of property, plant (3) - (12)
and equipment
Acquisition of subsidiaries - (93) (92)
Cash acquired with - 81 80
subsidiaries
Net cash from investing (1) (10) (7)
activities
Net (decrease) / increase in (1,188) 7 390
cash and cash equivalents
Cash and cash equivalents at 1,116 725 725
the beginning of the period
Effect of exchange rate (4) - 1
changes
Cash and cash equivalents at (76) 732 1,116
the end of the period
Consolidated Statement of Changes in Shareholders' Equity
for the six months ended 31 July 2008 (unaudited)
6 months ended 31 6 months ended 31 July 2007 12 months ended
July 2008 �'000 �'000 31 January 2008 �'000
Balance at start of period (351) 1,342 1,342
Total recognised income and (1,157) (1,542) (1,718)
expense
Share based payment charge 15 18 25
Balance at end of period (1,493) (182) (351)
Notes
1. Approval of interim report
The interim report was approved by the directors on 30 October 2008.
2. Basis of Preparation
This interim report has been prepared in accordance with IFRS and International Reporting Committee ('IFRIC') interpretations that are
expected to be applicable to the consolidated financial statements for the year ended 31 January 2009. These standards are subject to
ongoing amendment and/or interpretation and are therefore still subject to change. Accordingly information contained in this interim report
may need to be updated for subsequent amendments to IFRS required for new standards issued post the balance sheet date.
The financial information herein does not constitute full statutory accounts within the meaning of Section 240 of the Companies Act 1985
(as amended).
Although the group has net liabilities and has recorded further losses in the period, this report has been prepared on the basis that
the group will continue to be a going concern. As described above, the Board is actively engaged in stabilising the group's financial
position.
3. Segmental Reporting
.
6 months ended 6 months ended 12 months ended
31 July 2008 31 July 2007 31 January 2008
�'000 �'000 �'000
Revenue Profits / (losses) Revenue Profits / (losses) Revenue Profits / (losses)
Rewards 908 665 2,025 1,247 4,536 2,603
Promotions 1,321 641 960 439 1,645 962
Hotel Catalogues 156 50 213 (1,090) 387 (1,120)
Central - (1,922) - (1,974) - (3,952)
Exceptional - - - (147) - (150)
Total 2,385 (566) 3,198 (1,525) 6,568 (1,657)
Net financial expense (16) (17) (20)
Loss before taxation (582) (1,542) (1,677)
4. Exceptional items
Exceptional items are those significant items which are separately disclosed by virtue of their size or incidence to facilitate a better
understanding of the group's financial performance.
The exceptional items disclosed in the six months ended 31 July 2007 comprise a write down of goodwill (�1,130,000) and a litigation
settlement (�147,000).
5. Loss per share
The calculation of loss per share is based on the weighted average number of shares in issue during the period of 14,024,136 (31 July
2007: 14,024,136; 31 January 2008: 14,024,136) and on the loss for the period of �1,153,000 (31 July 2007: �1,542,000; 31 January 2008:
�1,719,000).
6. Reconciliation of loss before taxation to cash generated from operations
6 months ended 31 6 months ended 31 12 months ended 31 January 2008
July 2008 �'000 July 2007 �'000 �'000
Loss before taxation (582) (1,542) (1,677)
Depreciation 75 93 185
Goodwill impairment - 1,130 1,130
Decrease / (increase) in 11 (1) 22
inventories
(Increase) / decrease in (223) (235) 244
receivables
(Decrease) / increase in (66) 135 (426)
payables
(Decrease) / increase in (415) 378 866
provisions
Share based payments 15 18 25
Net finance expense 16 17 20
Cash generated from operations (1,169) (7) 389
This information is provided by RNS
The company news service from the London Stock Exchange
END
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